Veltex Corporation (VLXC)

[Growth And Value]

I don't think the insiders are selling. If they were, then they would not be able to keep the 50% + shares necessary to maintain control. They would have had to hold an annual meeting recently if they didn't control over 50%.

All I know about the J Daly marketing deal is that Veltex is authorized to market J Daly's products. We have not been told yet if the 50% acquisition is a done deal or not.

Yes, insiders did sell some shares probably in the $2.50 - $3.90 range. I also think they used the cash to help purchase Veltex-Explorer. You can't acquire a $2.2 Million net income per year division without giving up something. My guestimate is about $3.5 - $4.0 Million cash and 2-2.5 Million shares.

Still that would equate to a 30% return on investment. I'd rather hold my shares and sell them at $2.50, then put money in a saving account and earn 2%, but that's just me.

If the 2004 audit comes out to be consolidated with Bangladesh, then yes VLXC will be worth $6.00.